This study analyzes the effect of managerial style on firm value by partitioning general and administrative (G&A) expenses in the real estate investment trust industry into a nondiscretionary "structural" component associated with the costs of asset and liability management and a discretionary...

We trace the effects of corporate focus by examining the relationships among focus, cash flows and firm value. In contrast to past studies that examine the effects of diversifying across SIC-code-defined industries, we show that diversification, even within a single industry, reduces value. Our...

In this study, we examine the relationship between the liquidity of equity and its market value. We find that creating liquid equity claims on relatively illiquid property assets increases value by 12-22%. However, the fixed costs associated with creating these claims offset these liquidity...

We investigate relations among inside ownership, managerial expenses, risk sharing and equity valuations. Our engine of analysis-Real Estate Investment Trusts (REITs)-provides a unique and rich framework for analysis since we can calculate extremely accurate measures of asset replacement costs,...

We explore the role of expected cash-flow volatility as a determinant of dividend policy both theoretically and empirically. Our simple one-period model demonstrates that, given the existence of a stock-price penalty associated with dividend cuts, managers rationally pay out lower levels of...